Steel Sector

Lord Stoddart of Swindon Excerpts

Monday 18th January 2016 Lords Chamber

[Baroness Neville-Rolfe]

I think I have covered the ground well but there is due to be another summit in February for the EU to look at these issues.

[Lord Stoddart of Swindon (Ind Lab)]

My Lords, the noble Lord, Lord Stevenson, mentioned delays in the Government taking action. Of course, one reason for the delay is the European situation in relation to trade assistance. Can I have an assurance from the Minister that other countries in the EU are taking the same notice of EC rules as is this country? Secondly, in relation to energy costs, why are the Government—as has already been noted—paying the Chinese and the French huge sums of money to build nuclear power stations which will take at least 10 to 15 years to build and, at the same time, are closing down coal-fired power stations, which provide the cheapest form of energy?

[Baroness Neville-Rolfe]

My Lords, the EU rules on state aid apply to everybody. Where member states do not apply them, they get taken to the European Court of Justice and there are quite significant penalties and financial implications. That is why steel industries across the EU have found it difficult. These state aid rules can be beneficial in other areas. On nuclear power, we are, of course, looking for investment in this vital industry. It is one of the areas in which the Chinese have indicated that they may invest. I see that as different and separate from steel. If there are problems with steel, we should take action in the steel area.